ADM and Metabolix to Build Biobased Plastics Plant in Iowa

Archer Daniels Midland Company (ADM) and Metabolix, Inc. announced
in mid-March that they plan to build a chemical plant in Clinton, Iowa,
to produce plastics from cornstarch. The plant will initially produce
50,000 tons of biobased plastic per year and is expected to be
operating by mid-2008. It will be located next to ADM's existing wet
corn mill, which will provide the raw material for the plastics plant.
According to ADM, the plastics produced at the plant will range in
properties from rigid to elastic and could potentially be converted
into coatings, films, fibers, adhesives, and a variety of molded and
thermoformed products. See the
ADM press release.

Biobased products replace petroleum-based products with chemicals and
materials produced from agricultural resources. The federal government
has recognized the importance of using more biobased products, and has
placed the U.S. Department of Agriculture (USDA) in charge of a
program to encourage federal agencies to buy biobased products. In
early March, the USDA designated six classes of products for which
federal agencies must consider buying biobased products, including
diesel fuel additives; hydraulic fluids for mobile equipment;
penetrating lubricants; roof coatings; water tank coatings; and
bedding, bed linens, and towels. See the
USDA press release
and the
Federal Biobased Products Preferred Procurement Program Web site.